Blockchain fraud group strikes again, launches fresh scheme on Blast network

History of scamming

The group has targeted other platforms, including Avalanche (AVAX), Ethereum, Arbitrum (ARB), and Solana (SOL), showcasing their adaptability and widespread presence in blockchain.

According to ZachXBT, the scammers usually grow their honeypot projects to seven-figure values before executing a rug pull and making off with investors’ funds. The blockchain sleuth pointed to past projects, including Solfire Finance on Solana, Lendora Protocol on Scroll, and Magnate Finance on Base, as past handiworks of the group.

In the Magnate Finance incident, the group reportedly stole more than $6.5 million hours after ZachXBT, alongside other security experts, raised alarm over the project. In the Solfire scam, they made off with approximately $3 million.

Blast, a layer-2 (L2) network introduced by Blur founder Tieshun Roquerre, has recently been hit by several scams, exploits, and rug pulls. In February, a project on the platform, RiskOnBlast, suffered a rug pull, resulting in a loss of around 500 ETH.

In March, Super Sushi Samurai, a blockchain game native to the network, suffered a token exploit just before its gaming launch. The team confirmed an exploit of $4.6 million due to a smart contract bug, verified by on-chain security firm CertiK.

According to the Super Sushi team, the exploiter manipulated the game’s smart contract to double token balances and mass-sell into its liquidity pool.

In the same month, another Blast-based non-fungible token (NFT) game, Munchables, suffered a $62 million exploit. Munchables acknowledged the breach and stated efforts to track the exploiter’s actions and halt the transactions.